Social Security: 7 Countries With Better Retirement Programs Than the United States

Kevin Xiong / Getty Images/iStockphoto

For decades, the U.S. Social Security system has been the cornerstone of retirement planning, ensuring a basic level of financial support for retirees.

However, while the American system has its merits, several countries around the world have developed impressive retirement programs that offer superior benefits, sustainability and overall satisfaction. Here’s a look at seven countries often touted as having superior pension systems.

The Netherlands

With a combination of defined benefit and defined contribution plans, the Dutch pension system is consistently ranked among the best in the world. It provides a flat-rate public pension combined with quasi-mandatory occupational pensions, ensuring that most retirees receive more than 70% of their pre-retirement income.


Denmark has a fully funded pension system, which relies on a mix of public and private pensions. The country’s ATP Livslang pension is a notable highlight, offering retirees a guaranteed annuity for life, funded by contributions throughout their working life.


Australia’s superannuation system is built around the mandatory superannuation guarantee, which requires employers to contribute a fixed percentage of their employees’ earnings to a private superannuation fund. Robust and well-regulated private sector participation ensures that retirees benefit from both public and private pension assets.


The Swedish pension system underwent significant reforms in the 1990s, moving to a notional defined contribution system. This change ensures transparency, sustainability and flexibility. Retirees receive state benefits, but they can also opt for premium pensions where they can choose their investment strategy.


The Norwegian retirement program is designed to be simple and comprehensive. The National Insurance Scheme provides a universal pension to all residents. Added to this are compulsory occupational pensions and tax incentives favorable to voluntary retirement savings.


Finland offers a tiered approach to retirement, including a national pension system, mandatory earnings-related pensions, and voluntary private pensions. These tranches provide broad coverage, with the aim of replacing a significant portion of an individual’s pre-retirement income.

New Zealand

New Zealand Superannuation is a universal pension scheme for all residents aged 65 and over, regardless of work history or income level. Additionally, the voluntary KiwiSaver program offers tax incentives, making it attractive to those looking to supplement their retirement income.

Although the U.S. Social Security system has supported millions of retirees over the years, it is worth looking internationally for models of sustainability, inclusiveness, and comprehensive coverage. These seven countries illustrate innovative approaches to pension design and financing, balancing current contributions with future obligations and ensuring that retirees can maintain their standard of living during their golden years.

Editor’s Note: This article was produced using automated technology and then refined and checked for accuracy by a member of the GOBankingRates editorial team.

More from GOBankingRates

#Social #Security #Countries #Retirement #Programs #United #States
Image Source :

Leave a Comment